The Rupee opened stronger on Friday, aided by dip in oil prices and broad-based ?dollar weakness, although traders cautioned that Middle East war risks continue to ?lurk in the background. The currency has traded ?in a 94.96-95.60 range so far this week, coming under ?pressure from renewed exchanges of strikes between the U.S. and ?Iran, while drawing support from likely intervention by the Reserve Bank ?of India. The fresh hostilities have revived volatility in oil prices, with Brent ?crude swinging between $71 and $80.50 a barrel during the week. Brent was last quoted at $76.34, down about 2% on Thursday after a rally. Oil moving away from the $80 level ?is "naturally" good for the rupee," a trader at a private sector ?bank said. India imports most of its requirement of the critical commodity. However, with the fighting ?continuing, ?nervousness around the rupee's path will persist and the question is whether the conflict "becomes worse" over the weekend, he said. Iranian armed forces ?launched attacks on U.S. military infrastructure in Gulf states on Thursday in response to U.S. strikes on ?Iran's southern coastal and eastern provinces, a move that ?further strained ?a three-week-old ceasefire. The yen bounced on Friday on news that Japan plans to ?encourage pension funds to increase their holdings of domestic financial assets, a move analysts said could offer greater support to ?the battered currency than intervention. The yen jumped in the aftermath and was recently 0.6% higher at 161.44 per dollar. The yen strength was broad-based. The euro fell ?0.34% to 184.93 yen, while the British pound slid 0.27% to 217.06 yen. In the broader market, the yen strength in turn pushed the dollar lower; it fell 0.3% against a ?basket of ?currencies to 100.61 . Overnight, investors seemed to brush off flaring tensions in the U.S.-Israeli war on Iran as oil fell and stocks rallied, though currencies were mostly rangebound. But the implosion of a ceasefire between the U.S. and Iran has once again cast a cloud over the outlook for energy prices and global inflation. The dollar was set to end the week little changed, with renewed safe-haven gains offset by ?receding expectations of a rate increase from the Federal Reserve . The euro rose 0.25% to $1.1459. Sterling was up ?0.3% at $1.3451 and was ?set to rise more than 0.7% for the week. The Australian dollar edged 0.27% higher to $0.6960, while the New Zealand dollar advanced 0.58% to $0.5789. Oil prices rose on Friday and were set for weekly gains because of renewed fears of supply disruptions from the key Middle East ?producing region after renewed fighting between the U.S. and Iran this week curtailed shipping ?in the Strait of Hormuz. Brent futures were up 19 cents, or 0.25%, to $76.49 a barrel by 0319 GMT. U.S. West Texas Intermediate (WTI) crude gained 19 cents, or 0.26%, to $72.27.......